London—The Houndsditch Estate’s ownership scheme was recently modified as New York-based investment company Madison International Realty acquired a stake in the property. The company acquired half of the ownership stake in the property from TIAA Henderson Real Estate for a fee estimated at around $157 million, on behalf of its Central London Office Fund. The acquisition is set to lay the groundwork for a brand new joint venture between TIAA Henderson and Madison International Realty.

According to the director of Central London Offices at TIAA Henderson Real Estate, Nick Deacon, creating the joint venture with the N.Y.-based company is part of TH’s current strategy to enter JVs that operate across a range of sectors. “We are excited to enter into a new partnership with such a reputable firm and look forward to working collaboratively together to create further value from the estate,” he says.

Derek Jacobson, managing director, Madison International Realty, says, “This transaction is directly in line with our investment strategy of acquiring ownership stakes in core, quality real estate located in prime locations through the injection of equity into existing joint venture and partnership structures.”

Houndsditch Estate, City of London, totals five properties including Cutlers Court, 117-119 Houndsditch, 120 Houndsditch, Cutlers Exchange and 133 Houndsditch. The properties are located on a freehold island site in London that totals 1.75 acres. Totaling roughly 326,000 square feet of space, and a total value of around $315 million, the site was acquired by TH Real Estate in two different stages in 2006 and 2009. Occupancy at the property is high, with 95 percent of the space currently leased. The area is one of the most sought-after submarkets of the City of London, offering great proximity to the nearby Liverpool Street transport hub, the site where a new Crossrail terminus is set to be added three years from now.

TIAA Henderson manages a London office portfolio of 30 properties, valued at around $2.3 billion. The transaction in question means that TH and Madison are now equal share partners for the entire Houndsditch portfolio. TIAA-Henderson will continue to act as the property manager on behalf of the newly created joint venture.